WESTLAKE, Texas–(BUSINESS WIRE)–Today the Schwab Crypto Thematic ETF (STCE) begins trading on the NYSE Arca. The fund, from Schwab Asset Management, the asset management arm of The Charles Schwab Corporation, is designed to track a new proprietary index, the Schwab Crypto Thematic Index, and to provide investors with global exposure to companies that may benefit from the development or exploitation of cryptocurrencies and other digital assets. With an annual expense ratio of 0.30%, STCE is the lowest crypto-related ETF available to investors today.1
“We are pleased to offer investors the Schwab Crypto Thematic ETF, which is different from other crypto-related ETFs on the market today in the way that the index identifies, selects and weights constituents based on a company’s relevance to the crypto ecosystem that uses natural language processing,” said David Botset, managing director, head of equity product management and innovation at Schwab Asset Management. “The index STCE is designed to track may offer more targeted exposure to cryptocurrency-focused companies compared to blockchain technology ETFs, which may have significant exposure to multinational companies involved in blockchain.2 This new ETF is a great example of how we are leveraging our scalable foundation and core capabilities to innovate to help clients with more personalized needs.”
The goal of the Schwab Crypto Thematic ETF is to track as closely as possible, before fees and expenses, the total return of the Schwab Crypto Thematic Index. Developed by Schwab Asset Management’s thematic research team, the index is built with the powerful combination of human insight, artificial intelligence technology and systematic models.
The index does not track or invest directly in cryptocurrencies. Rather, it is designed to provide global exposure to companies that may benefit from one or more of the following business activities: either directly or facilitating others in validating consensus mechanisms for (such as mining or staking) investing in, or trading cryptocurrency or other digital assets; enables the use of cryptocurrency or other digital assets to buy or sell goods or services; and develop, distribute or implement applications of blockchain or other distributed ledger technology, including in new cryptocurrencies or digital assets.
More information about the Schwab Crypto Thematic ETF can be found here.
About Schwab Asset Management
One of the industry’s largest and most experienced asset managers, Schwab Asset Management offers a focused selection of competitively priced ETFs, mutual funds and separately managed account strategies designed to serve the core needs of most investors. By operating through the eyes of our clients, and putting them at the center of our decisions, we aim to deliver exceptional experiences to investors and the financial professionals who serve them. As of June 30, 2022, Schwab Asset Management managed approximately $575.9 billion on a discretionary basis and $34.4 billion on a non-discretionary basis. More information is available at www.schwabassetmanagement.com.
About Charles Schwab
At Charles Schwab, we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and advisors and the employers who serve them, and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us on TwitterFacebook, YouTube and LinkedIn.
Disclosures:
Investors should carefully consider the information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, fees and expenses. You can obtain a prospectus, or if available, a summary prospectus by going to schwabassetmanagement.com/prospectus. Please read it carefully before investing.
Investment returns will fluctuate and are subject to market volatility, so an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, units of ETFs cannot be redeemed individually directly with the ETF. Shares in ETFs are bought and sold at the market price, which may be higher or lower than the net asset value (NAV).
The fund will not invest directly in cryptocurrency or digital assets. It invests in companies listed in the Schwab Crypto Thematic Index and is designed to provide global exposure to companies that may benefit from the development or use of cryptocurrencies (including bitcoin) and other digital assets, and the business activities related to blockchain and other distributed ledgers technology.
The fund is non-diversified, which means that it can invest in securities of relatively few issuers. As a result, a single adverse economic or regulatory event may have a more significant effect on the Fund’s investments, and the Fund may experience increased volatility.
The technology associated with digital assets, including blockchain, is new and evolving, and the risks associated with digital assets may not fully emerge until the technology is widely used. In addition, the values of the companies included in the fund may not reflect their connection to digital assets, but may be based on other business operations or industries, which means that the operating results of such companies may not be significantly related to their respective activities related to digital assets.
The Fund invests in a portfolio of securities based on a theme, and its performance may suffer if such a theme is not correctly identified or if the theme develops in an unexpected manner. Performance may also suffer if the securities included in the index do not benefit from the development of such a theme.
International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets can highlight these risks.
The Schwab Crypto Thematic Index was developed by Charles Schwab Investment Management, Inc. and is designed to deliver global exposure to companies that can benefit from one or more of the following business activities: either directly or facilitating others in validating consensus mechanisms for (such as .eg mining or betting), investing in or trading cryptocurrency or other digital assets; enables the use of cryptocurrency or other digital assets to buy or sell goods and services; or develop, distribute or implement applications of blockchain or other distributed ledger technology included in new cryptocurrencies or digital assets. For complete and current index methodology, see schwabassetmanagement.com/products/stce.
Schwab Asset Management™ is the dba name of Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab ETFs. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Asset Management is a separate but affiliated company and subsidiary of The Charles Schwab Corporation, and is not affiliated with SIDCO.
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1 Source: Based on crypto-focused ETFs within ETF.com ECS’s “Digital Economy” niche category, June 30, 2022.
2 All company names are for illustration purposes only and are not a recommendation, offer to sell or a solicitation of an offer to buy securities.
